* Equities, currencies await debate
* MSCI AxJ -0.1%, set for worst monthly loss since March
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Pete Schroeder and Tom Westbrook
WASHINGTON/SINGAPORE, Sept 30 (Reuters) - Asian shares slipped and the dollar was under pressure on Wednesday in the lead up to the first U.S. presidential debate, as financial markets looked to take a measure of both candidates.
The first face-off between Democrat Joe Biden and President Donald Trump, set to begin at 0100 GMT, is seen by some political analysts as Trump's best chance to upend a race where he has consistently lagged in opinion polls. for Trump in the debate could lift otherwise cautious market sentiment, said Michael McCarthy, chief strategist at broker CMC Markets in Sydney.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged down 0.1% in early trade. It is headed for a monthly drop of 3.3%, the largest fall since March.
Japan's Nikkei .N225 was down 0.2% and Australia's ASX 200 .AXJO fell 1.3%, while markets in Seoul .KS11 rose 0.8%.
Futures pointed to small opening gains in China SFCc1 and Hong Kong HSIc1 . S&P 500 futures ESc1 were steady, last trading 0.1% firmer, with moves slight ahead of the debate.
Also on the horizon is factory activity data from China, due at 0100 GMT, where a small pickup is expected as the world's second biggest economy extends its steady recovery from the coronavirus crisis. surprise could swing markets' mood.
"The sorts of numbers that would confirm China's recovery, from being 'first in to first out' of the pandemic, is proceeding apace," said Ray Attrill, head of FX strategy at National Australia Bank in Sydney.
Steady Asian trade followed a dip on Wall Street which snapped a three-day rally as traders approached the debate with trepidation and fretted about whether the next round of U.S. fiscal stimulus might be falling by the wayside.
The Dow .DJI and S&P 500 .SPX fell half a percent and the Nasdaq Composite .IXIC dropped 0.3%. .N
In currency markets, the U.S. dollar was also down slightly before the debate, hitting one-week lows against the euro and Swiss franc. The dollar index fell 0.3% =USD . /FRX
U.S. House Speaker Nancy Pelosi said on Tuesday she hoped to have a coronavirus aid deal with the White House this week, after speaking with Treasury Secretary Steve Mnuchin and making plans for further talks on Wednesday.
However White House economic adviser Larry Kudlow told CNBC that the Democrats' $2.2 trillion compromise relief bill still seemed too large - leaving plenty of room for the impasse to persist. economic impact of the coronavirus pandemic was underlined later Tuesday, when Disney DIS.N announced plans to lay off roughly 28,000 U.S. employees from its theme parks division. optimistic sign came on Tuesday when U.S. consumer confidence saw its biggest rebound in 17 years. will also be looking at Wednesday's ADP (NASDAQ:ADP) National Employment report, a precursor to official U.S. employment figures out Friday for the latest reading on the labour market.
Spot gold XAU= steadied at $1,895 an ounce.
Oil prices nursed losses amid caution ahead of the debate and rising coronavirus cases. U.S. crude CLc1 fell 1% to $38.92 per barrel and Brent LCOc1 settled at $41.03. O/R
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